The European Systemic Risk Board has published its latest risk dashboard (issue 7).

The headlines in the risk dashboard are:

  • the EU macroeconomic environment is slowly improving;
  • labour market conditions have improved for a number of stressed EU countries;
  • countries’ levels of indebtedness are likely to weigh on the recovery. While the deficit-to-GDP ratio is projected to fall below the 3% benchmark in 2014, public debt levels continue their ascent and approach 90% of GDP for the EU as a whole;
  • financial conditions continue to improve. Sovereign debt markets continue to stabilise, including for stressed countries; and
  • the price/earnings ratio of EU banking sector equity fell by one third over the last quarter of 2013 as a number of banks from stressed economies are returning to profit.

View ESRB risk dashboard – issue 7, 28 February 2014

View ESRB risk dashboard: an overview (issue 7), 20 March 2014